5 Takeaways From PLMA's Private Label Trade Show
Manufacturers, retailers and other industry professionals gathered this week in Rosemont, Ill., near Chicago, to learn how to keep the momentum going for store brands, which continue to perform strongly across categories and channels. The Private Label Manufacturers Association chose a theme of “The Store Brands Phenomenon 2024” for this year’s trade show, reflecting the acceleration of such products and innovations from supplier and retail partners.
Below are five trends spotted at the annual show, held Nov. 17-19 and featuring more than 1,800 exhibitors and an estimated 15,000 attendees across the industry.
1. Private label remains a big and growing business and such portfolios have become standalone brands instead of lower-priced alternatives. “Just as our show has expanded, so have, too, have store brands. This year, we’ve seen record highs in both dollar and unit shares for store brands projected to surpass a quarter trillion dollars in total sales. It’s a real testament to all of us who have made a career in this business and to the hard work that we really push for, day after day,” declared PLMA President Peggy Davies, in her remarks to a packed room during the breakfast session on Nov. 18.
2. Surging demand for store brands is reflected in the success of grocers that specialize in private label and limited assortments. Dave Rinaldo, president at Batavia, Ill.-based ALDI USA, was the keynote speaker on Nov. 18 and focused on ways that retailers and manufacturers can continue to fuel the private label boom as shoppers remain hungry for value. “This is a critical time for our industry, and we have some real opportunities as an industry. I think we really turned the corner and shoppers know they don’t have to sacrifice quality to get the savings that they are after. Nearly 50% of Americans switched from name brands in the last year and that’s up 11% from the year prior,” he pointed out during his hourlong presentation.
Rinaldo explained some of the drivers behind ALDI’s ongoing acceleration, as the retailer anticipates opening 800 new stores in the next five years in existing and new markets, and suggested ways that retailers and suppliers can seize the moment and continue to drive shopper trust and sales.
“We rely on you for the quality to our customers,” he told manufacturers in the room. “Your ability to produce is what they end up associating with us from a quality standpoint. Innovation is going to be key for us and the industry as we move forward to continue to progress people’s association of private brand legacies.” He noted that innovation comes in the form of new products, new technologies and improved value chain optimization.
Later, Rinaldo sat down with Progressive Grocer to talk more about the ALDI’s ongoing acceleration, the importance of collaboration between suppliers and retailers and the company’s culture of caring for people and the planet.
3. Innovation is already happening in a big way. To Rinaldo’s point, much of the excitement around private label has centered on the sense of discovery and newness among consumers who also appreciate value. That was evident at PLMA’s Idea Supermarket and New Product Expo, areas within the show that spotlighted new, interesting and relevant products across a range of categories. Examples included premium foods and beverages from companies like Ahold Delhaize, Target and Gopuff, the recently launched Amazon Saver portfolio, snacks such as vegan coconut jerky and canned seafood and RTD wines, cocktails and milk teas, among dozens of other items.
4. Shoppers have more options for shortcuts. Consumers are still preparing and eating a lot of meals and snacks from home and have more private label choices. This year’s exhibit floor at PLMA – which includes a whopping 3,000 booths – showcased a host of items that deliver on simultaneous demands for taste, variety and convenience. Examples include pouches of pitted snack olives and pickles, a plethora of easy-to-use spreads, dips, sauces and glazes, bags of salty snacks made from bananas, avocadoes and even Brussels sprouts, and frozen and refrigerated authentic meals from international manufacturers.
5. Storytelling matters. Just because a product is private label doesn’t mean that it doesn’t have a compelling story behind it. Attendees at this year’s PLMA checked out a wide range of products with claims about origin and sustainable sourcing and production, ranging from chocolate from Ecuador to certified organic juices with no sugar added, no additives and no preservatives. Vendors also shared how they can work with retailers to share such stories in a mutually beneficial way.
Next year’s PLMA trade show is slated for Nov. 16-18, 2025. The association is also preparing for its 2025 Annual Meeting and Leadership Conference, to be held April 2-4 in Scottsdale, Ariz.
